Swiggy and Blinkit are making changes beyond just selling groceries. In a Mumbai suburb, workers at Swiggy’s warehouse, backed by SoftBank, rush to deliver groceries in just 10 minutes. They keep track of time closely on a screen that flashes warnings if they’re too slow. Outside, Swiggy’s delivery bikers, dressed in bright orange shirts, quickly pick up packed orders and deliver them nearby. Others return to pick up more orders from the app.
The goal is to finish picking up orders within 1 minute 30 seconds, says warehouse manager Prateek Salunke. Swiggy is rapidly expanding its warehouses across India to deliver groceries, including items like milk, bananas, and even condoms and roses, within minutes. This fast delivery model is changing how people shop in India.
Traditionally, Indians shopped at local stores for groceries or got free deliveries by calling them. But with the rise of e-commerce led by Amazon and Flipkart, things changed. However, these big companies don’t offer as quick grocery deliveries as Swiggy and its competitors like Zepto and Blinkit, which focus on fast commerce.
According to Goldman Sachs, quick deliveries already make up 45% of India’s $11 billion online grocery market. They predict that by 2030, fast commerce will dominate 70% of the market, reaching $60 billion. Swiggy, initially a food delivery service, is now betting big on last-minute grocery delivery in India, which is the world’s third-largest retail market.
Swiggy’s new service, Instamart, targets urban consumers aged 21-35 who prioritize convenience. The company plans to increase its warehouses from 500 to 750 by April 2025. While globally, fast delivery startups faced challenges post-pandemic, in India, the trend is growing.
Consumers like Mumbai lawyer Natasha Kavalakkat find these quick delivery apps convenient. However, this boom in fast commerce has hit smaller retail stores hard. Many have seen a significant drop in sales as people prefer quick deliveries. Some traditional stores are trying to adapt by using apps like WhatsApp to take orders and deliver quickly.
Swiggy’s quick commerce division is growing rapidly, but it’s still not profitable. Zomato, another major player, recently acquired Blinkit and is also focusing on quick commerce. While there are risks, with low-profit margins and high spending on discounts and marketing, Swiggy and Blinkit are diversifying into higher-margin products beyond groceries.
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